Notes to Accounts of Lincoln Pharmaceuticals Ltd.

Mar 31, 2015

1 a. The company has only one type of equity share of Rs. 10 each listed
on BSE and ASE. Each of the share holders has right give one vote per
share. The company declares and pays dividend in Indian rupees. The
dividend proposed by the Board of Director is subject to the approval
of the shareholders in the Annual General Meeting.In the event of
liquidation of the Company, the equity shareholders shall be entitled
to proportionate share of their holding in the assets remaining after
distribution of all preferential amounts.

b. The company has not issued any shares in pursuant to a contract
without receiving the payment in cash during the last five years. The
company has also not issued any bonus share during last five years.

c. The company as well as the promoters of the company has given
undertaking to the State Bank of India that, dring currency of working
capital loans financed by the said bank, the company will not effect
any change in the company's capital structure through disinvestment by
promoters of their quota in the equity.

d. The demand loans form Bank includes working capital loan from State
Bank of India. This loan is secured against all changeable current
assets and by a collateral security by way of Equitable Mortgage of
1397 Sq meters land and building thereon at SN 469 of Sola Village,
Daskoi Taluka Ahmedabad and Equitable mortgage of land and building at
WTG site P-21 Village and Visavada Porbandar. charge on residual fixed
assets of the company. this term loans are guaranteed by directors of
the company.

2. Other details to Balance Sheet

a. The Board of Directors has proposed a dividend of Rs. 1,63,10,800/-
to be distributed to equity share holders at the rate of Rs. 1.00 per
equity share of Rs. 10 Each.

b. In the opinion of the Management, there are no indication, internal
or external which could have the effect of impairing the value of the
assets to any material extent as at the Balance sheet date requiring
recognition in terms of AS-28

c. In the opinion of the board, the current assets are approximately of
the value stated if realized in the ordinary course of business. The
provision for the depreciation and for all known Liabilities are
adequate and not in excess of amount reasonably necessary. There are
no Contingent Liabilities other than stated.

d. Balance of Trade Receivables & Loans and Advances is subject to
confirmation by them.

2 Guarantee on Bank Loan to Subsidiary Company Rs. 14.00 Cr. as on
31/03/2015

4. Related party disclosures a List of related parties

Sr. Name of related Party Nature of relation

1 Lincoln Parenteral Limited Subsidiary Company

2 Karnavati Distributors Limited Controlled by Key Managerial
Persons

3 Downtown Travels Pvt. Ltd. Controlled by Key Managerial
Persons

4 Downtown Finance Pvt. Ltd. Controlled by Key Managerial
Persons

5 Zullinc Healthcare Limited Subsidiary Company

6 Sunmed corporation Pvt. Ltd Controlled by Key Managerial
Persons

7 Mahendra G. Patel Key Managerial Person

8 Rajnikant G. Patel Key Managerial Person

9 Hasmukh I. Patel Key Managerial Person

10 Arvind G. Patel Key Managerial Person

11 Kailashben M. Patel Relative of Key Managerial
Person

12 Munjal M. Patel Key Managerial Person

13 Mansiben M. Patel Relative of Key Managerial
Person

14 Nidhi M. Patel Relative of Key Managerial
Person

15 Kalpnaben R. Patel Relative of Key Managerial
Person

16 Ashish R. Patel Key Managerial Person

17 Shivani A. Patel Relative of Key Managerial
Person

18 Siddharth R. Patel Relative of Key Managerial
Person

19 Dharmisthaben H. Patel Relative of Key Managerial
Person

20 Jigar H. Patel Relative of Key Managerial
Person

21 Hansaben A. Patel Relative of Key Managerial
Person

22 Amar A. Patel Relative of Key Managerial
Person

23 Binal A. Patel Relative of Key Managerial
Person

24 Anand A. Patel Relative of Key Managerial
Person

25 Manshi A. Patel Relative of Key Managerial
Person

26 Avis Travells Controlled by Key Managerial
Persons

5. Segment Reporting

a. Primary Business Segment: There is only one segment namely,
Pharmaceuticals Products.

b Secondary Segment:

Segment revenue in geographical segment considered for disclosure is as
follows.

i. Domestic Sales

ii. Export Sales

6. Medium and Small Enterprises

In the absence of information available with the Company about
enterprises which are qualifying under the definition of Medium and
Small Enterprises as defined under Micro Small & Medium Enterprises
Development Act, 2006, no disclosure is made as required under the Act.

7. The assets, liability Income and Expenditure of the previous year is
regrouped/ reclassified to conform to the current year's presentation.

Mar 31, 2014

1. Basis of Preparation:

The financial statements have been prepared under the historical cost
convention on an accrual basis and comply in all material respects with
the Accounting Standards notified by Companies (Accounting Standards)
Rules, 2006 (as amended) and the relevant provisions of the Companies
Act, 1956.

The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual result and estimates are recognized in
the period in which the results are known / materialized.

2. a The company has only one type of equity share of Rs. 10 each
listed on BSE and ASE. Each of the share holders has right give one
vote per share. The company declares and pays dividend in Indian
rupees. The dividend proposed by the Board of Director is subject to
the approval of the shareholders in the Annual General Meeting.In the
event of liquidation of the Company, the equity shareholders shall be
entitled to proportionate share of their holding in the assets
remaining after distribution of all preferential amounts.

b The company has not issued any shares in pursuant to a contract
without receiving the payment in cash during the last five years. The
company has also not issued any bonus share during last five years.

c The company as well as the promoters of the company has given
undertaking to the State Bank of India that, dring currency of working
capital loans financed by the said bank, the company will not effect
any change in the company''s capital structure by disinvestment by
promoters of their quota in the equity.

3. a The secured laon from ohers includes loans from finance
companies.The rate of interest on these loans ranges from 10.50 % pa to
13 % pa.The repayment period of these loans ranges from 36 months.
these laons are secured against the asset under finance.

b Unsecured long term laons includes corporate loan from related
parties & others.

c The demand loans form Bank includes working capital loan from State
Bank of India. This loan is secured against all changeable current
assets and by a collateral security by way of Equitable Mortgage of
1397 Sq meters land and building thereon at SN 469 of Sola Village,
Daskoi Taluka Ahmedabad and Equitable mortgage of land and building at
WTG site P-21 Village and Visavada Porbandar. charge on residual fixed
assets of the company. this term loans are guaranteed by directors of
the company.

4. Other details to Balance Sheet

a The Board of Directors has proposed a dividend of Rs. 97,86,480/- to
be distributed to equity share holders at the rate of Rs. 0.60 per
equity share of Rs. 10 Each.

b In the opinion of the Management, there are no indication, internal
or external which could have the effect of impairing the value of the
assets to any material extent as at the Balance sheet date requiring
recognition in terms of AS-28

c In the opinion of the board, the current assets are approximately of
the value stated if realized in the ordinary course of business. The
provision for the depreciation and for all known Liabilities are
adequate and not in excess of amount reasonably necessary. There are no
Contingent Liabilities other than stated.

d Balance of Trade Receivables & Loans and Advances is subject to
confirmation by them.

Company''s in house R&D unit has been approved by Government of India,
Ministry of Science & Technology, Department of Scientific and
Industrial Research, New Delhi. The Company''s in house R&D unit is also
approved for weighted deduction U/S 35 (2AB) of the Income Tax act,
1961.

g Segment Reporting

a) Primary Segment:

The company is in the business of

i. Manufacturing & marketing of Pharmaceuticals products and

ii. Trading in finished goods, chemicals products and Bulk drug

b) Secondary Segment:

Segment revenue in geographical segment considered for disclosure is as
follows.

i. Domestic Sales

ii. Export Sales

h Medium and Small Enterprises

In the absence of information available with the Company about
enterprises which are qualifying under the definition of Medium and
Small Enterprises as defined under Micro Small & Medium Enterprises
Development Act, 2006, no disclosure is made as required under the Act.

i The assets, liability Income and Expenditure of the previous year is
regrouped reclassified to conform to the current year''s presentation.

Mar 31, 2013

Basis of Preparation:

The financial statements have been prepared under the historical cost
convention on an accrual basis and comply in all material respects with
the Accounting Standards notified by Companies (Accounting Standards)
Rules, 2006 (as amended) and the relevant provisions of the Companies
Act, 1956.

The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual result and estimates are recognized in
the period in which the results are known / materialized.

Mar 31, 2012

Basis of Preparation:

The financial statements have been prepared under the historical cost
convention on an accrual basis and comply in all material respects with
the Accounting Standards notified by Companies (Accounting Standards)
Rules, 2006 (as amended) and the relevant provisions of the Companies
Act, 1956.

The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual result and estimates are recognized in
the period in which the results are known / materialized.

a. The company has only one type of equity share of Rs. 10/- each
listed on BSE and ASE. Each of the share holders has a right to give
one vote per share. The company declares and pays dividend in Indian
rupees. The dividend proposed by the Board of Director is subject to
the approval of the shareholders in the Annual General Meeting. In the
event of liquidation of the Company, the equity shareholders shall be
entitled to proportionate share of their holding in the assets
remaining after distribution of all preferential amounts

b. The company has not issued any shares in pursuant to a contract
without receiving the payment in cash during the last five years. The
company has also not issued any bonus share during last five years.

c. The company as well as the promoters of the company has given
undertaking to the State Bank of Indian that, while currency of the
term loans and working capital loans financed by the said bank, the
company will not effect any change in the company's capital structure
by prohibiting disinvestment by promoters of their quota in the equity.

d. The term loans includes following terms loans Rs. 87,87,511 of term
loan secured against Equitable Mortgage of 1397 Sq meters land and
building thereon at SN 469 of Sola Village, Daskoi Taluka Ahmedabad and
Equitable mortgage of land and building at Windmill site P-21 Village
Visavada Porbandar. And balance Rs. 36,24,800 on hypothecation of
vehicles and personal guarantee of the directors.

1) Other Information

a. The Board of Directors has proposed a dividend of ' 97,86,480/- to
be distributed to equity share holders at the rate of ' 0.60 per equity
share of face value Rs. 10/- each.

b. In the opinion of the Management, there are no indication, internal
or external which could have the effect of impairing the value of the
assets to any material extent as at the Balance sheet date requiring
recognition in terms of AS-28

c. In the opinion of the board, the assets other than Fixed Assets and
Non Current Assets are at least of the value stated if realized in the
ordinary course of business.

d. Balance of Trade Receivables & Loans and Advances is subject to
confirmation by them.

d. Research & Development expenditure :

Company's in house R&D unit has been approved by Government of India,
Ministry of science & technology, Department of Scientific and
Industrial Research, New Delhi. The company's in house R & D unit is
also approved for weighted deduction U/s 35(2AB) of the income tax
act,1961.

e. Segment Reporting

a) Primary Segment:

The company is in the business of

i. Manufacturing & marketing of Pharmaceuticals products and

ii. Trading in finished goods, chemicals products and Bulk drug

b) Secondary Segment:

Segment revenue in geographical segment considered for disclosure is as
follows.

i. Domestic Sales

ii. Export Sales

f. Medium and Small Enterprises

In the absence of information available with the Company about
enterprises which are qualifying under the definition of Medium and
Small Enterprises as defined under Micro Small & Medium Enterprises
Development Act, 2006, no disclosure is made as required under the Act.

g. The company has prepared financial statement as per revised schedule
VI to the Companies Act 1956 and accordingly, the assets, liability
Income and Expenditure of the previous year is regrouped/ reclassified
to conform to the current year's presentation.

Mar 31, 2010

2009-2010 2008-2009

Rupees Rupees

1. CONTIGENT LIABILITY NOT PROVIDED FOR

{A} Commitment under letter of credit 38,930,250 41,331,180

{B} Guarantee given 3,126,529 4,551,638

Total 42,056,779 45,882,818

2. DETAILS OF SECURITY OF SECURED LOANS AS PER SCHEDULE NO.: 3

Working Capital and Term Loan is secured by

(i) Hypothecation of all raw material comprising of bulk drugs and
chemicals, stock in progress, finished goods, all other stores and
spares and receivable/book debts, both present and future.

(iii) Collateral security by way of mortgage created or to be create on
immovable property of the company. Hypothecation of all movable plants,
machineries, and other movable assets both present and future and other
movables assets present and future of the company.

3. R&D expenses :

1 Since 2001, Companys in house R&D unit has been approved, by
Government of india, Ministry of science & technology, Department of
Scientific and industrial Reserch. New Delhi. Further Companys in
house R&D unit has been also approved for weighted deduction u/s
35(2)(AB) of the income tax act 1961.

4. Deferred Tax

1 During the year, the company has accounted for deferred tax in
accordace with the accounting standard -22" Accounting for Taxes on
income" issued by the Institute of Chartered Accountants of India.
Accrodingly the accumulated defered tax assets & liabilities have been
reconginised for timing difference identified as on 31.03.2010 with
corresponding charges to carry forward prior year balance of profit &
loss account.

2 The deferred tax during the year for the timing difference is
accounted using the tax rates that have been enacted , the net
difference arising thereon is debited to profit & loss account.

As per guidelines issued by the Institute of Chartered Accountants of
India under AS - 28 "Impairment of Assets", the Company has assessed
the recoverable amount of the relevant assets and found that there is
no indication of any impairment loss exists in relation to its assets
as at 31st March, 2010

7. Company has allotted 24,00,000 equity share of face value of
Rs.10/- each for cash at a premium of Rs.17/- each by way of
preferential allotment during the year and the shares have been listed
with the Stock Exchanges.

8. The Company, had issued 10,000,000 warrants with a right to
subscribe equal number of equity shares of Rs. 2 /- each at a premium
of Rs. 8/- per share. The Company had received Re.1 /- per warrant in
the previous year as required under applicable SEBI guidelines.
Subsequently the Company has consolidated the 5 Equity shares of Rs.
21- each in to one equity share of Rs. 10/- each.

Out of the same, warrant holders holding 65,00,000 warrants exercised
the rights by paying balance amount @ Rs. 9/- per share (Face value of
Rs. 2/- per share) and against the same, the Company allotted 13,00,000
Equity shares or Rs. 10/- each at a premium of Rs. 40/- per shares to
them . The Company forfeited the amount paid on balance 35,00,000
warrants which remained unexercised.

9. There is no outstanding GDRs/ADRs as on date Company.

Mar 31, 2009

1. Previous years figures have been regrouped and rearranged wherever
necessory occurances.

2008-2009 2007-2008

2. CONTIGENT LIABILITY NOT PROVIDED FOR

{A} Commitment under letter of credit 41,331,180 5,317,431

{B} Guarantee given 4,551,638 10,029,703

Total 45,882,818 15,347,134

3. DETAILS OF SECURITY OF SECURED LOANS AS PER SCHEDULE NO.: 3

{B} Working Capital is secured by.....

(i) Hypothecation of all raw material comprising of bulk drugs and
chemicals, stock in progress, finished goods, all other stores and
spares and receivable/book debts, both present and future. (ii)
Personal gurantee of managing director, joint managing director and one
whole time director (iii) Collateral security by way of mortgage
created or to be create on immovable property of the company.
Hypothecation of all movable plants, machineries, and other movable
assets both present and future and other movables assets present and
future of the company.

4. R&D expenses :

1 Since 2001, Companys in house R&D unit has been approved, by
Government of india,Ministry of science & technology, Department of
Scientific and industrial Reserch.New Delhi. Further
Companys in house R&D unit has been also approved for weighted
deduction u/s 35(2)(AB) of the income tax act w.e.f. 15.12.2007.

5. Deferred Tax

1 During the year, the company has accounted for deferred tax in
accordace with the accounting standard -22" Accounting for Taxes on
income" issued by the Institute of Chartered Accountants of India
Accrodingly the accumulated defered tax assets & liabilities have been
reconginised for timing difference identified as on 31.03.2009 with
corresponding charges to carry forward prior year balanc a of profit &
loss account.

2 The deferred tax during the year for the timing difference is
accounted using the tax rates that have been enacted , the net
difference arising thereon is debited to profit & loss account.

6. RELATED PARTY DISCLOSURE [AS PER AS -18]

A Related parties disclusre as required by as 18, (Related party
disclosure) are given below:

As per guidelines issued by the Institute of Chartered Accountants of
India under AS-28 "Impairment of Assets", the Company has assessed the
recoverable amount of the relevant assets and found that there is no
indication of any impairment loss exists in relation to its assets as
at 31st March, 2009.

8. Company has issued 10,000,000 preferential warrants on 21 -07-2008
with a right to subscribe equity shares of Rs. 2/- each and company has
received Re. 1 per each warrant. Subsequently company has consolidated
5 equity shares of Rs. 2/- each fully paid up into one equity share of
Rs. 10/- each. In view of the same, the right to subscribe the equity
shares would get consolidated at the time of exercise of right to
convert into equity share.